Induction machines designed for inverter-driven variable speed systems are different from those fed directly from a utility power line. In this paper, a novel design approach for inverter driven induction machines is presented and implemented. This is followed by an investigation on sizing equations and rotor slot shape specifically for this purpose, The proposed approach permits the integration of the design of machines with inverters, comprehensive performance analysis, and system optimization, resulting in 20-30% higher power density for the induction machine than those designed for direct utility power supplies by conventional methods. Simulation analysis and experimental results are presented to substantiate the conclusions.